The role of ERP accounting in supply chain management and logistics
Managing your Supply Chain is a process that starts from the raw materials and the inbound logistics all the way to the outbound logistics. While supply chain management concepts have received increased attention, the key to an efficient supply chain is to make sure that the process runs as smoothly as possible.
Supply chain management is recognised as the management of key business processes across the network of organisations that supply you. Without an efficient supply chain, there would be many bottlenecks in the process.
One needs to follow through each and every step of the process and make sure that things go efficiently and smoothly. ERP Accounting plays a significant function in supply chain management, however recent studies have shown how your business can be affected by the management of supply chain and distribution.
What does the ERP accounting system do in supply chain management?
Accounts Payables
The amount of cash that flows out of the company in exchange for goods or services from another person or company is the accounts payable. With accounting, we can organise and track the payments to vendors efficiently. An ERP accounting system allows a business to keep track of all types of financial transactions and is capable of generating reports that provide management with specific information to aid in the decision-making process.
Accounts Receivables
Accounts receivable allows you to track invoices for payment, that your clients have ordered but not yet paid for. It helps in managing your accounts efficiently with customer tracking, invoice management, activity analysis, receipt and cash receipt processing.
For a successful supply chain, you need data, records, reports, analysis, accurate accounting information about your assets, liabilities and profits. This is why ERP Accounting plays a crucial role in supply chain management.
SapphireOne ERPCRMBusiness Accounting Software purpose is to provide an accounting system with a framework to be used in implementing supply chain management and logistics. The objective is to establish a common strategy for the SCM with common aims across multiple accounting software companies.
Logistics and supply chain management are now firmly established as analytical business practices. Many companies have appointed expert accountants who are responsible for ensuring the cost-effective operation of the end-to-end pipeline that link the supply side of the business with the end market. The practice of logistics and Supply chain management is an evolving process even though the underlying ideas have been around for a while. Logistics and supply chain management play an important role in achieving a competitive advantage. Supply chains today operate in a world where the rate of change continues to increase. There is a need to develop logistics and supply chain solutions that are flexible and capable of adapting quickly to changes in the business environment.
For a sneak peek at the full capabilities ERP, CRM, Accounting Software, Human Resources, Payroll, Assets and Document Management, check out SapphireOne and request a live demo, it is everything you’ll ever need to make your company management a success.
